Technical Analysis #C-SUGAR : 2020-08-28

IFC Markets

Master Trader
Oct 31, 2012
London (Great Britain)
Recommendation for Sugar : Sell

Sell Stop : Below 12.9
Stop Loss : Above 13.5

Donchian ChannelSell
Parabolic SARSell

Chart Analysis
IFC Markets Tech Analysis

On the daily timeframe #C-SUGAR: D1 is retracing down toward the 200-day moving average MA(200) which is rising yet. We believe the bearish momentum will continue after the price breaches below the lower boundary of Donchian channel at 12.9. This level can be used as an entry point for placing a pending order to sell. The stop loss can be placed above the last fractal high at 13.5. After placing the order, the stop loss is to be moved every day to the next fractal high, following Parabolic signals. Thus, we are changing the expected profit/loss ratio to the breakeven point. If the price meets the stop loss level (13.5) without reaching the order (12.9), we recommend cancelling the order: the market has undergone internal changes which were not taken into account.
Fundamental Analysis

Brazil’s sugar production is rising as its currency weakened. Will the sugar price continue falling?